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Crypto is all the buzz these days and is likely to continue being so in the coming years. So how can a rookie crack into the peculiar world of blockchain? Even if you know all there is to know about trading practices in the financial markets, there’s still a dearth of information on how to make winning trades in the crypto market.
That’s why copy trading has gained a strong footing in the crypto-verse. It offers new traders a chance to mirror the trades carried out by experts. But with its rise in popularity and the variety of platforms offering it, you might be wondering if it is a good choice for beginners like yourself.
Is Copy Trading a good choice for beginners?
Copy Trading is an excellent choice for traders who are venturing into the crypto market for the first time, and even experienced traders who don’t have the time or resources to trade actively. Before we get into the whys and the hows, let’s do a quick primer.
What is Copy Trading?
Copy Trading essentially allows you to mimic the moves of experienced traders on the crypto market in real time. You mirror every move they make on the market including their position, risk appetite, the amount traded, the type of tokens, and even the type of order placed.
Before choosing a trader, it is a commonly known best practice to vet their past performances and find out their monthly returns and their reactions to market volatility. Ensure that you either set your trading parameters before copying or find traders that match your trading preferences.
5 Reasons why copy trading is great for beginners:
- Less time- and resource-intensive: Crypto traders often need to be online on community forums, check social media channels, and stay on top of news to know when and how to move. They must actively manage their positions and exit at the right time to maximize profits. All of that time can be saved when you follow an experienced trader’s moves. With copy trading, newcomers and passive market participants can profit from the cryptocurrency markets effortlessly.
- No need to be an expert: Goes without saying, that you don’t have to digest 10 months’ worth of market data to make your next move. Someone is already doing it, you just have to follow their lead. However, it is advisable to do a bit of digging into the trader you’re copying.
- Risk mitigation: Because you are copying a trader who’s in it full time, who takes more time, resources, and educated moves, you are mitigating the risks of executing uninformed market trades.
More diversified portfolio: A popular use for copy trading strategy is portfolio diversification. Every trader has their own choice of tokens, their understanding of the market, and strategies that are unique to their risk appetite and trading experience, all of which may be different from your own. And that’s what makes it a great diversification strategy. Never put all your eggs in one basket–find out where others are putting it and do the same. This way you also leverage the wealth of experience and learned knowledge of other traders to maximize potential revenue.
How to Start Copy Trading in Cryptocurrency?
To start copy trading in cryptocurrency, first, you have to get an app that allows you to copy a trader's moves. When choosing a tool, look at its security compliance, trader selection, ease of use, deposit and withdrawal capabilities, staking options, and other features that match your preferences.
Zenit World, a cryptocurrency platform, is a great option for its advanced copy trading features, simplicity of use, and for its security protocols. The platform’s 2023 roadmap is centered around security and authentication through a stringent Know Your Customer (KYC) process and an Anti Money Laundering (AML) monitoring system.
Professional traders who are chosen to trade on Zenit World undergo a rigorous selection process, which includes verification of their trading history, compliance with applicable laws and regulations, and adherence to the platform's ethical standards.
To start copy trading in cryptocurrency with Zenit World, you must first
- Get the app, create an account, and fund it - Complete your KYC and AML procedures, and choose crypto or fiat currency to deposit.
- Choose traders you want to follow - Within the app, there’s a list of traders, their past performance, portfolio composition, and risk levels that you can refer to. Risk levels are calculated using a sophisticated algorithm that accounts for multiple factors, including past performance, trading frequency, and risk management strategies.
- Set your copy preferences - Decide the amount you want to allocate for the copy trading, set margin levels, leverage percentages, stop loss and take profit levels, and other preferences.
Activate feature - Enable the feature within the app.
In a nutshell
Copy Trading is a fantastic option if you’re just starting your crypto journey. Apart from saving time and resources by copying experienced traders, you’re also learning how experts move within the market. It’s like skipping the line to get to the top. Now, you too, can trade like the ‘crypto whales.’
Website 🔗 https://zenit.world/
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Arman Shirinyan
Alex Dovbnya
